Fuel price hike good news: Montek

Regards it as an increase in credibility of basic part of the reforms strategy

PTI | September 16, 2011



Planning commission on Friday said the decision of oil marketing companies to raise petrol price by Rs 3.14 per litre is a good news and will provide credibility to the economic reforms process.

"What has happened (fuel price hike)... on that front it is a good news. I regard that as a vindication...(and) an increase in credibility of basic part of the reforms strategy," planning commission deputy chairman Montek Singh Ahluwalia told reporters in the national capital.

State-owned oil companies, including IndinaOil, Bharat Petroleum and Hindustan Petroleum, on Thursday hiked petrol price citing impact of depreciating value of rupee against dollar on import of crude oil.

After the hike, petrol price increased to Rs 66.84 per litre in Delhi. This is the second hike in four months. Oil companies had last increased petrol price by Rs 5 per litre on May 15 this year.

On impact of fuel price hike on the automobile sector, Ahluwalia said, "I don't believe that fuel price hike is hurting investment sentiments... We are standing by the signal given by the government that fuel price (in India) will be aligned with global rates."

The decision to hike petrol price is in sync with the views of the planning commission, which has been advocating that energy prices in the country should be aligned with global rates.

Asked if terror strikes would affect investment environment, he said, "I don't think so."

Ahluwalia had earlier on Thursday admitted that investment in infrastructure during the 11th Plan period (2007-12) is likely to be 10-12 per cent short of the USD 500-billion target.

Comments

 

Other News

₹5,000 crore saved from suspected financial fraud

In a significant gain for citizen protection in the digital economy, the Department of Telecommunications (DoT) has helped prevent suspected cyber fraud losses of more than ₹5,000 crore through its Financial Fraud Risk Indicator (FRI) within fifteen months of its launch on May 22, 2025. This money did

Capital acquisition proposals worth Rs 1.10 lakh crore for defence forces cleared

The Defence Acquisition Council (DAC), under the chairmanship of Raksha Mantri Rajnath Singh, on Monday accorded Acceptance of Necessity (AoN), that is, in-principle administrative approval to various acquisition proposals of the defence forces at an estimated cost of about Rs 1,10,000 crore.

How Rafi, Raj Kapoor helped pave the way for a great uranium deal

There`s a certain moment in diplomacy that`s too personal to be captured in a communiqué, too small to make the front page, but more revealing than the front page. This week, prime minister Narendra Modi reached Tashkent and, amid the pomp of state visits, managed to evoke the old Bollywood tunes

Distinguishing Fish 1 and Fish 2: The pragmatism behind India’s WTO ratification

 India became the 123rd WTO member to ratify the multilateral Agreement on Fisheries subsidies (AoFS) when it deposited the Instrument of Acceptance for Phase 1 on July 20, 2026. The ratification is restricted to disciplining Illegal, Unreported and Unregulated fishing (IUU), protection for overfished

The 7% growth problem: Why the next 7% will be harder

India has become accustomed to hearing the 7% growth number. It is now less a milestone than an expectation. Yet the paradox is becoming clearer: maintaining 7% growth may be considerably harder than achieving it once. India’s real GDP grew 7.7% in FY2025–26, following growth of 6.5% in FY202

The Constitution cannot be altered: Justice Abhay Oka

Justice Abhay Oka, who retired from the Supreme Court in May 2025, has said that the Constitution of India cannot be altered. Explaining the landmark Kesavananda Bharati judgment (1973) on the basic structure of the Constitution, he said, “This is one judgment that has saved democracy in India.&rdq

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter